Airbnb
Airbnb, known for its flexible and characterful offerings, has introduced significant updates to enhance the reliability of its listings. While challenging hotels in flexibility and cost, Airbnb acknowledges the need for consistency, a factor often criticized in guest reviews. In their latest winter release, Airbnb is focusing on an extensive review and reputation system to add predictability. Brian Chesky, Airbnb’s CEO, emphasizes the importance of managing expectations, stating, “Our homes are one of a kind – that’s a strength for us, but their reliability is the big question.”
Key changes include a redesigned reviews page featuring a carousel displaying overall and category-specific ratings. Users can now sort reviews by most recent or highest rated. The company is also introducing a new “Guest Favorites” badge, designating highly rated properties based on criteria like an average rating of 4.9, less than a 1% cancellation rate, and a less than 1% incident rate. This badge, updated weekly, aims to provide more transparency to potential guests and make hosts more accountable.
Acknowledging the limitations of the five-star rating system, Chesky mentions the challenge of heterogeneity. While Airbnb wants to maintain the uniqueness of listings, it seeks to provide more details to alleviate uncertainty for consumers. The company is careful not to overhaul the existing rating system, which boasts over 317 million reviews, but is instead focusing on adding context with labels like “Guest Favorites.”
On the host side, Airbnb is introducing tools to enhance the hosting experience. An easily accessible “Listings” tab allows hosts to add amenities, and an AI-powered photo tour automatically arranges images uploaded by hosts into different rooms.
Looking ahead, Airbnb plans to incorporate more AI-powered features, with generative AI being tested for review summaries. Chesky highlights its potential applications in language translation between hosts and guests, identifying property amenities from photos, and improving customer service efficiency.
As of Q3 2023, Airbnb reported $3.4 billion in revenues, experiencing an 18% year-on-year growth. Despite positive financials, the company remains cautious about potential volatility in Q4.
In summary, Airbnb’s latest updates aim to address consistency concerns through an enhanced review system and new features, with future plans to leverage generative AI for improved customer service and overall user experience.
